globalization of media in b2b-publishing 05-09-02 ruud bakker chairman & ceo
Post on 19-Dec-2015
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TRANSCRIPT
2
Overview
VNU – introduction
Globalisation: some observations
Mission statement of business information
The cross media concept
Strategic opportunities
Tactical opportunities
Reality check
3
VNU: an introduction
Active in over 100 countries Market leader with premium brands Top 25 Euronext Exchange Amsterdam Media and information for professional use
– marketing information
– media measurement & information
– business information
– directories Based in Haarlem, The Netherlands Worldwide 38,000 employees Revenues over EUR 4.3 billion
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Business information through 3 channels:- Print: 140 trade magazines and directories- Face to face: 150 trade shows and events- Internet: 250 related sites
Insight in business and trade
Media that connect buyers and sellers
VNU Business InformationVNU Business Information
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VNU Business InformationFirst half year 2002 results
Fall in advertising revenues in the US has bottomed out,continued decline in Europe, cost savings will off set declinein US, further round of cost savings in Europe implemented,as exposed to IT-publishing and recruitment advertising markets.
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Key messages
Exhibit 6
Traditionally (Business) media & information ranked “low” in terms of “readiness” for globalization
Electronic media & information and competitive forces are now gearing up the (business) media space;
Sources of competitive advantage will be based on business intelligence resulting from a database publishing model.
VNU’s Cross-media Strategy
builds on this “globalization” trend
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PRINTPUBLISHINGLittle Growth
Reduced ProfitabilityLow Share holder valuePoor Customer focus
No services
INFORMATIONPUBLISHING
GrowthProfitability
Share holder valueCustomer focus
Enhanced services
Pressures for change
The dynamic publishing model has changed the value chain It is strongly influencing users views of how to best access information It is changing the way users subscribe to publications It is affecting the Brand Print identity It is transforming the content supply chain, the finances, the marketing, the customer
relationships, the distribution paths, the kinds of publications and the business strategies within publishing
Global slowdownGlobalisation
‘Free’ web contentNew models
ROS
Economics
Self ServiceOn Demand
Multi ChannelPersonalisation
Added value
Customers
DigitisationInternet Growth
e-delivery channelsCTP
Technology
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Business information strategy
Central to VNU’s strategy is the connection of our Central to VNU’s strategy is the connection of our core activities and competencies to provide a core activities and competencies to provide a
deeper insight of b2b and b2c consumer’ behaviour deeper insight of b2b and b2c consumer’ behaviour to clientsto clients
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Cross media strategy: The Concept
Key is dynamic relation between brand and community; Core elements of that relation are:
Circulation database; Content database; Media platforms.
B2B publishing is an information business: Defined communities of professionals; Deep knowledge of community:
targeting data on demographic and professional profiles combining content-data with profile data;
Providing business intelligence in multi-platform distribution: Print publishing; Conferences and exhibitions: face to face media; Online electronic media; Offline electronic media; Print and electronic direct mail; Research.
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Cross media strategy: The Value of the Concept
Central strategy: the connection of VNU’s core activities and competencies to provide a deeper insight of b2b and b2c ‘consumer’ behaviour to clients;
The past was about building media brands, the future is about strategically leveraging their assets to offer information based solutions to clients;
Objective: open up new and more profitable revenues by: providing a one stop media and information resource from
research and planning through to delivery, encompassing pre and post awareness research and offering
analysis of results and buyer behaviour.
Critical success factor: a menu of information products and services by: combining databases with data mining tools, to deliver better results and unique data to our clients through our
media channels.
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Top level view of business components
Paper publications
Research
Shows
Conferences
Digital publications
Direct Marketing
Warehouse
Symbiotic relationship should exist between all businesses and platforms linked by an information ring main and having a warehouse at it’s core to feed a CRM tool which serves to track and build
Revenue contribution of each name in the warehouse
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Publish
What do we want for Cross media?
Create Sub Edit Paper
Web
PDA
SMS
Workflow
Ownership, rights management, NDA, Embargoes, Platforms, recharges,
Paid/Unpaid, Manual classification
Central repositorydb
Automatic classification & Indexing
XML
Storage
Thesaurus
Denotes re-use
WAP
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Future media information business model
Content Input
News, Pics, ListingsAds, Prices, LabsReviews,classified
Urls, etc
Publishingdb
Data Output
Syndication intelligence, directoriesResearch, list rental,
etc
Content Output
Paper, Web, EmailPDA, PDF, ebookSMS, Events, etc
Listdb
Data Input
Registration personalisation digital usage,
orders, etc
Intelligencedb
14Integrated Workflow
European Architecture
LocalWorkflow
AUTOMATED
Word PhotoShop
Quark
Live db Server
Staging db Server
ISDNServer
Paper PDA WebemailSyndication ebook
AUTOMATED UPLOAD
Metadata
ExplorerNetscape Java BasedWeb CMS
(Spanish)
Media Portal
Ads PR
PDFText Images
Edit
Quark DMS Server
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This is the way we managed – in traditional publishing - our products
OriginalProductPaper
Productebook
ProductSMS
Productweb
ProductExhibition
ProductList rental
ProductPDA
Product email
In the past product tactics have driven
platform strategy which limited the development of new products as we tried to protect position of original at expense of
the new
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Key for the future is how we manage and perceive our brands
Productebook
ProductSMS
Productweb
ProductExhibition
ProductList rental
ProductPDA
Product email
ProductPaper
ProductPaperBrand
StrategyBrand strategy drives product
tactics maximising
potential of all and limiting none
TacticsWhat to publish?
To which audience?On what platform?
Which revenue models?How much ROI
What level of marketing?
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Which will define and drive our reader information collection strategy
BrandCRMdb
ebookEdition
sub
EmailAlert reg
WebPassword
reg
Research:Planning &awareness
List rentalOpt incheck
Exhibition:Interactive
Client/Visitor marketing
PDADownload
sub
PaperSubsform
Each platform has different Reg requirements.
The Brand CRM collects all
records for each user, building up a better picture of cross media use
The user submits less info for each
registration. But we collect more for
each individual. All can be managed from one point.
Making registration easier and more
efficient
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How do we realise this
Requires a fundamental shift in our thinking….
Our Key assets are: Brand & communities Readers = Circulation databases Advertisers = Client Databases Content = Databases of media assets
As a magazine publisher we did not need to treat editorial as a collection of assets;
As an information provider with multiple platforms we need to combine the media assets of our core brands with our customer databases;
Therefore we must not think platforms but assets.
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Strategic opportunities
One content production system for many platforms, cross border production;
Central cross border editorial production units (news, specials product-testing);
Re-using media assets across borders in flexible way (text, data, images);
Creating once, (re-)producing many times; Direct syndication of content; Efficient (optimal) delivery of content on different platforms; Generating more revenues from the same readers (adding
premium services on different platforms); Selling business intelligence/information solutions to customers:
targeting, research.
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Categorical cost overview print publishing VNU BME
Total Direct Costs 37%
Gross margin 63%
Editorial 15%
Sales 8%
Other Operating Costs 2%
Marketing costs 7%
Contribution to overhead 31%
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Tactical opportunities:optimising the cross media model
Reduce production costs (paper,print, distribution); Reduce editorial costs; Increase revenues:
Higher ad-yields; Paid for premium services; Targeting data; Research;
Higher investments: Infrastructure; Sales; Marketing.
Total Direct Costs 37% 35%
Gross margin 63% 65%
Editorial 15% 13%
Sales 8% 9%
Other Operating Costs 2% 3%
Marketing costs 7% 8%
Contribution to overhead 31% 32%
Increased revenue potential 5%@ 80% incremental margin
Potential margin improvement 5 points
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Reality check
VNU Business Media Europe is current rolling out the European architecture to facilitate the cross media database information model;
In the year 2003 we will have central publishing units operational in London (Newswire), Munich (European special unit) and a networked product-testing Lab (London/Munich/Paris);
All European publications are now computer to plate-produced (CTP) and we are considering having part of the portfolio (monthlies) produced centrally;
European wide and local syndication shows accelerated growth;
Main Challenges: Combining the many circulation databases, integrity of data; Generating more reader-revenues by exploiting the database
information; Creating premium services to readers, increasing revenues per
subscriber.